This post is a continuation of the “Direct Selling vs. Employment” blog series. Part Five can be found here. The podcast this blog originated from can be found here.
It could happen in any organizational structure that follows the traditional business model — it’s not the way those businesses are created. This model was designed specifically to give the individual a reasonably unlimited opportunity to move forward and create massive success. A position in a market like this is built for that. Now, are all businesses created equal, are all compensation plans equal, are all methods of creating leverage equal? No, they all have pluses and minuses.
When you have a job, and you’re part of a company that sells a product or service, it doesn’t matter a whole lot whether you’re utilizing that product or service. If you’re the salesperson, you might have a little more credibility if you’re utilizing the product or service.
I worked for a pharmaceutical company way back in the day and certainly the sales reps in the pharmaceutical company wouldn’t be consuming all of the products that they’re flogging to the doctor.
But in this type of a business model, it’s a little bit more organic than that, and your product story is typically your own best tool in the business. Typically people would get involved in a direct selling company because they believe in the product or industry and they want to be connected to a company and a product that’s the best possible solution or the best possible thing in the industry.
The great thing about direct sales companies is because they’re not paying all this money for advertising because they’ve got all these marketers out there that are doing it for them. They’re able to theoretically, put more money and value into the product. The products are also sold price-competitive, meaning that if you’re talking to your friend and your friend believes in this product and this friend suggests this product to you, the reason why you’re buying it isn’t that it’s the cheapest one sitting on the shelf.
Many times these companies want to create the absolute best possible product in a product category where they wouldn’t even be put on the shelf in a normal business model. They’ll choose a direct sales model because of its a more belief-built business. The upside to that is typically, the products are genuinely unique standout products, and if it’s in an industry or category that you have a personal interest in or belief or passion for, it can be gratifying to stand behind these products.
But the downside is that products cost money, and that means utilizing the products. Many people from a business or an employee mentality say “I don’t have to buy the products from the job that I work for to be employed.” You don’t have to, but it’s tough to be a robust stand for this great product if you don’t bother to use it yourself.
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